Read the full stored bill text
UNOFFICIAL COPY 26 RS BR 1393
Page 1 of 7
XXXX 2/26/2026 12:04 PM Jacketed
AN ACT relating to workforce development, making an appropriation therefor, and 1
declaring an emergency. 2
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 3
SECTION 1. A NEW SECTION OF KRS CHAPTER 336 IS CREATED TO 4
READ AS FOLLOWS: 5
As used in Sections 1 to 3 of this Act: 6
(1) "Apprentice" means a person employed by a public water or wastewater system 7
who is enrolled in a registered apprenticeship program for water systems 8
operations specialists or wastewater systems operations specialists, who has 9
entered into a voluntary writt en agreement with the registered apprenticeship 10
program sponsor, and that agreement has been submitted to the United States 11
Department of Labor's Office of Apprenticeship and the Kentucky Apprenticeship 12
Council; 13
(2) "Cabinet" means the Education and Labor Cabinet; 14
(3) "Employer" means any person or organization employing an apprentice whether 15
or not the employer is a party to an apprenticeship agreement or on -the-job 16
training agreement with the apprentice; 17
(4) "Kentucky FLOW Program" means the Kentucky Future Leaders of Water 18
Program established in Section 2 of this Act; 19
(5) "Public water or wastewater system" means: 20
(a) A water district or joint water commission formed under KRS Chapter 74; 21
(b) A water association formed as a nonprofit corporation under KRS Chapter 22
273; 23
(c) A sewer district, sanitation district, or joint sewer agency formed under KRS 24
Chapter 65, 67, 76, or 220; 25
(d) A regional wastewater commission formed under KRS Chapter 65; 26
(e) A municipal water utility or water works, sewer utility, sewage system or 27
UNOFFICIAL COPY 26 RS BR 1393
Page 2 of 7
XXXX 2/26/2026 12:04 PM Jacketed
works, or combined electric and water plant formed under KRS Chapter 96; 1
or 2
(f) A nonprofit corporation created under KRS 58.180 to act as an 3
instrumentality of one (1) or more governmental agencies in the acquisition 4
and financing of public projects, including water or sewer systems; 5
(6) "Registered apprenticeship program" means a program registered with the 6
United States Department of Labor's Office of Apprenticeship and the Kentucky 7
Apprenticeship Council established in KRS 343.020, and which meets the 8
standards set forth in 29 C.F.R. pts. 29 and 30, as evidenced by a certificate of 9
registration or other official documentation; 10
(7) "Related technical instruction" means an organized and systematic form of 11
instruction designed to provide the apprentice or tr ainee with knowledge of the 12
theoretical and technical subjects related to the apprentice's occupation in 13
accordance with the approved registered apprenticeship program standards; and 14
(8) "Sponsor" means any person, committee, or organization under whose na me or 15
title the registered apprenticeship program is registered, regardless of whether 16
such an entity is an employer. 17
SECTION 2. A NEW SECTION OF KRS CHAPTER 336 IS CREATED TO 18
READ AS FOLLOWS: 19
(1) The Kentucky FLOW Program is hereby established to provide an orderly process 20
for eligible public water or wastewater systems to apply for and receive funds to: 21
(a) Support up to fifty (50) employees of public water or wastewater systems 22
each program year in obtaining a voluntar y utility manager accreditation 23
from the Division of Enforcement within the Energy and Environment 24
Cabinet; 25
(b) Support up to fifty (50) new or continuing apprenticeship placements each 26
program year for apprentices in a registered apprenticeship program; 27
UNOFFICIAL COPY 26 RS BR 1393
Page 3 of 7
XXXX 2/26/2026 12:04 PM Jacketed
(c) Strengthen public water or wastewater system leadership capacity; and 1
(d) Improve public health, protection, and environmental compliance, while 2
safeguarding the Commonwealth's investments in capital water and 3
wastewater infrastructure projects. 4
(2) The cabinet shall administer a reimbursement program for public water or 5
wastewater systems that sponsor employees who enroll in and successfully 6
complete the Kentucky Division of Enforcement's voluntary utility manager 7
accreditation. Reimbursements shall be applied for and disbursed as follows: 8
(a) An eligible public water or wastewater system may receive reimbursement of 9
documented training, tuition, registration, materials, exam costs, and 10
reasonable travel expenses incurred on behalf of an employee complet ing 11
the accreditation, up to a maximum of two thousand five hundred dollars 12
($2,500) per employee; 13
(b) A public water or wastewater system shall apply for reimbursement on 14
behalf of an employee and must demonstrate that the employee successfully 15
completed the accreditation requirements; 16
(c) The cabinet shall publish application procedures and may disburse 17
reimbursement upon proof of employee completion and submission of 18
supporting documentation; and 19
(d) The cabinet may reserve up to fifty (50) reimbursement awards per year. 20
(3) (a) The cabinet shall administer a reimbursement program for public water or 21
wastewater systems that sponsor employees who enroll in a registered 22
apprenticeship program for water systems operations specialists or 23
wastewater systems operations specialists. 24
(b) Subject to available funds, the cabinet may award to eligible public water or 25
wastewater systems sponsoring or employing apprentices: 26
1. Wage reimbursement up to fifty percent (50%) of the apprentice's 27
UNOFFICIAL COPY 26 RS BR 1393
Page 4 of 7
XXXX 2/26/2026 12:04 PM Jacketed
hourly wage, capped at eight dollars ($8) per hour and two thousand 1
(2,000) hours per year, for a maximum of sixteen thousand dollars 2
($16,000) per apprentice per program year, disbursed quarterly upon 3
receipt of payroll records; 4
2. Reimbursement for related technical instruction tuition, fees, 5
textbooks, and training provider costs, up to two thousand five 6
hundred dollars ($2,500) per apprentice per program year, disbursed 7
upon documented expense; 8
3. Reimbursement for licensure and t esting, including exam fees, license 9
fees, and preparatory courses for the Division of Water's Kentucky 10
operator credentials, up to one thousand dollars ($1,000) per 11
apprentice, per program year, disbursed upon documented expense; 12
4. Mentor stipends up to one thousand dollars ($1,000) per apprentice 13
per program year, to be paid to a qualified certified operator or 14
supervisor of a public water or wastewater system who provides on -15
the-job training and competency sign -offs, disbursed quarterly upon 16
receipt of payroll records; 17
5. Reimbursement for essential safety gear, basic tools, and required 18
travel to related technical instruction, up to one thousand five hundred 19
dollars ($1,500) per apprentice per program year, disbursed upon 20
documented expense; and 21
6. Program administration, outreach, technical assistance to 22
apprenticeship program sponsors, program evaluation, and data 23
reporting, in an amount up to ten percent (10%) of annual 24
appropriations, disbursed upon documented expense. 25
(c) To receive funding under th is subsection, a public water or wastewater 26
system shall: 27
UNOFFICIAL COPY 26 RS BR 1393
Page 5 of 7
XXXX 2/26/2026 12:04 PM Jacketed
1. Be registered with the Secretary of State, if applicable, and be in good 1
standing; 2
2. Have a valid employer acceptance agreement on file with a registered 3
apprenticeship program sponsor; 4
3. Employ or sponsor apprentices in a registered apprenticeship program 5
approved by the Kentucky Energy and Environment Cabinet; 6
4. Pay apprentices no less than the wage schedule set forth in the 7
registered apprenticeship program standards; and 8
5. Comply with the regulations set forth in 29 C.F.R. pt. 30, as amended, 9
and in KRS Chapter 344. 10
(d) Awards shall be made pursuant to a reimbursement agreement between the 11
cabinet and the public water or wastewater system that includes at a 12
minimum, the name of the apprenti ce supported by the award, the expected 13
reimbursement for each relevant criteria in paragraph (b) of this 14
subsection, reporting requirements, and terms for forfeiture and repayment 15
of award funds for noncompliance with the reimbursement agreement. 16
(e) In scoring funding applications, the cabinet shall consider: 17
1. Workforce need and public benefit; 18
2. Public water or wastewater system size and financial capacity; 19
3. Geographic balance between applicants; 20
4. Quality of the registered apprenticeship program d esign, with 21
particular emphasis on a proven record of successful implementation, 22
performance outcomes, and measurable results; 23
5. Retention and progression plans of the public water or wastewater 24
system; and 25
6. Partnerships with the Kentucky Community and Technical College 26
System, the Department of Education's Office of Career and 27
UNOFFICIAL COPY 26 RS BR 1393
Page 6 of 7
XXXX 2/26/2026 12:04 PM Jacketed
Technical Education, industry associations, and workforce boards. 1
(f) Priority for funding may be given to public water or wastewater systems 2
serving disadvantaged communities, th ose currently experiencing a 3
workforce shortage or that have submitted an alternative staffing plan to the 4
Division of Water, or those that have received a notice of violation or 5
entered into an agreed order arising from noncompliance with the Safe 6
Drinking Water Act, 42 U.S.C. sec. 300f et. seq., or the Clean Water Act, 33 7
USC sec. 1251 et seq. 8
(4) On or before September 1, 2026, and each September 1 thereafter, the cabinet 9
shall publish an annual notice of funding and a standard application for the 10
Kentucky FLOW program on the cabinet's website. 11
(5) On or before September 1, 2027, and each September 1 thereafter, the cabinet 12
shall publish an annual report of the Kentucky FLOW program covering the 13
preceding fiscal year, including: 14
(a) The number of apprentices and sponsors; 15
(b) The regional distribution of grant awards; 16
(c) Completion and retention rates for the apprenticeship programs; 17
(d) Award funds obligated and expended by category; and 18
(e) Completion outcomes relative to selection criteria. 19
(6) The cabinet may audit recipients and shall recover improper payments as 20
established in a reimbursement agreement or by administrative regulations. 21
(7) The cabinet may promulgate administrative regulations in accordance with KRS 22
Chapter 13A to give effect to the Kentucky FLOW program and Sections 1 to 3 of 23
this Act. 24
SECTION 3. A NEW SECTION OF KRS CHAPTER 336 IS CREATED TO 25
READ AS FOLLOWS: 26
(1) There is hereby established in the State Treasury a restricted fund to be known as 27
UNOFFICIAL COPY 26 RS BR 1393
Page 7 of 7
XXXX 2/26/2026 12:04 PM Jacketed
the Kentucky FLOW Program fund. The fund shall consist of moneys received 1
from state appropriations, federal funds, gifts, grants, civil penalties collected by 2
the cabinet, and any federal funds. 3
(2) The fund shall be administered by the cabinet consist ent with this chapter and 4
KRS Chapter 343 and the administrative regulations promulgated thereunder. 5
(3) Amounts deposited in the fund shall be used for administering the Kentucky 6
FLOW Program established in Section 2 of this Act and for no other purpose. 7
(4) Notwithstanding KRS 45.229, fund amounts not expended at the close of the 8
fiscal year shall not lapse but be carried forward into the next fiscal year. 9
(5) Any interest earnings of the fund shall become a part of the fund and shall not 10
lapse. 11
Section 4. There is hereby appropriated General Fund moneys in the amount of 12
$1,347,500 in each fiscal year of the 2026 -2028 fiscal biennium, and thereafter subject to 13
biennial appropriation, to the Kentucky FLOW Program Fund est ablished in Section 3 of 14
this Act to provide funding for the purposes of the Kentucky FLOW Program. 15
Section 5. Whereas providing timely funding for the Kentucky FLOW Program 16
and public water and wastewater system apprent iceships is critically important, an 17
emergency is declared to exist, and this Act takes effect July 1, 2026. 18